Generating Mobile Banking Revenue While Improving Customer Experience

Michael J. McEvoy Managing Director

+1.617.243.9500

[email protected]

www.athpower.com

Generating Mobile Banking Revenue While Improving Customer Experience

© 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. Michael J. McEvoy +1-617-243-9500

If you plan to switch banks within the next 12 months, what are the main reasons?

11%

11%

12%

13%

16%

20%

21%

22%

24%

25%

28%

52%

58%

0% 20% 40% 60% 80%

Want a bank with better mobile banking

There was a security issue with one or more of my accounts

Other

Do not trust my current bank

Want a bank with better online banking

Current bank has made account errors

Want a bank that has more ATMs

Recommendation by friends/family/colleagues

Want a bank with more convenient banking hours

Want a bank that has more conveniently located branches

Not happy with the customer service at my current bank

Another bank has a good offer or promotion to join

Want better rates and fees on my accounts

Customer Expectations are Rising: Quality of Digital Channel Offerings Matters More Than Ever

2

Source: ath Power 2012 Ideal Banking Study™

© 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. Michael J. McEvoy +1-617-243-9500

49%

37%

30%

27%

30%

26%

10%

17%

24%

14%

16%

20%

0% 25% 50% 75% 100%

Mobile Banking2010

Mobile Banking2011

Mobile Banking2012

Do Not Need Would Like To Have Must Have Would Make Ideal

Soon, Majority of Customers Will See Mobile Banking As Core to Banking Relationship

3

Source: ath Power 2012 Ideal Banking Study™

Michael J. McEvoy +1-617-243-9500

5%

16%

32%

19%

20%

8%

Multiple times a day

Daily

2-3 times a week

Once a week

1 to 2 times a month

Less than once a month

How often do you use mobile banking with your bank?

72%

Mobile Customers Are Frequent Users of Mobile Banking – Suggests Revenue Opportunities

4 © ath Power Consulting Corporation. All Rights Reserved.

Source: ath Power 2012 Mobile Banking Study™


Gap in Mobile User Support Needs Addressing…. Or Customer Experience, Retention Will Suffer


3% 0%

14%

6%

38%

7%

23%

14%

0%

25%

50%

Text interaction with abanking agent

Video interaction with abanking agent

A tutorial on mobilebanking features

Banking advice

Available Feature Would Like



12%

16%

17%

19%

56%

61%

62%

Apply for a mortgage

Purchase a CD

Apply for an auto or other loan

Invest money in stocks or bonds

Conduct debit transactions at a store orrestaurant

Receive special offers, promotions,coupons

Store and maintain rewards points

Percent Who Would Use Feature

Improve Customer Experience and Revenue Potential by Providing Mobile Customers with Desired Capabilities



Michael J. McEvoy +1-617-243-9500 7 © ath Power Consulting Corporation. All Rights Reserved.

Best Practice in Mobile: Design ‘Customer Experience’ to Match the Device

Bigger Screen: • Detailed information (e.g. PFM) • Viewing statements / documents • Graphical representation

Less Mobile than Smartphone:

• Less useful for ‘on-the-go’ activities

Potential for Small Business Banking: • Less mobile device less likely to be lost • No alternate primary function (e.g. telephone)

Small Screen: • Quick transactions (e.g. checking balances) • Check what’s available for spending – like opening a wallet

Device Mobility:

• Location based services • P2P Payments • Point-of-sale transactions

‘Always on’:

• Alerts (fraud, stock trades, balance alerts, etc.)

Smartphone

Tablet

Michael J. McEvoy +1-617-243-9500 © 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. 8

Text Banking

Account Monitoring

Aligning Digital Channel ‘Customer Experience’ with the Device: Example of North American Bank

Text Banking Mobile Browser

Account Monitoring Bill Payment Credit Card Payment Transfers - In-Bank ATM / Branch Locator Customer Service

Text Banking Mobile Browser Mobile App

Account Monitoring Bill Payment Credit Card Payment Transfers - In-Bank ATM / Branch Locator Customer Service RDC P2P Payments

Text Banking Mobile Browser Mobile App Tablet

Account Monitoring Bill Payment Credit Card Payment Transfers - In-Bank ATM / Branch Locator Customer Service RDC P2P Payments Visualization - Spending, Cash Flow PFM Tools, Advice

Text Banking Mobile Browser Mobile App Tablet Online

Account Monitoring Bill Payment Credit Card Payment Transfers - In-Bank ATM / Branch Locator Customer Service RDC P2P Payments Visualization - Spending, Cash Flow PFM Tools, Advice Bill Payment - Setup Transfers - Out-of-Bank International Transfers Currency Orders

© 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. Michael J. McEvoy +1-617-243-9500 9

Looking Ahead…..

Laptop

Smartphone Tablet

Device Convergence

Touchscreen Laptops ‘Tabletization’ of websites? – Websites to be reengineered for Touchscreen devices:

‘Point-and-click’ to be replaced by ‘tap-and-swipe’

– Shift away from sequential navigation paradigms to Tablet-like experience

– Feedback from Tablet apps. to websites

– Touchscreen laptops

– Smaller tablets

– Smartphones with bigger screens

Meanwhile: How to serve up the ‘right’ customer experience???


6 Key Considerations for Banks Seeking to Improve Customer Experience in Mobile Channel

• Usage is high among mobile customers – experience needs to be reliable and consistent

• Technical support needs improvement

• Customer education on mobile capabilities will become more important with broader, ‘non-techie’ user base • Broad adoption will require a more compelling mobile offering – better functionality, more reasons to ‘tune in’

• ‘Customer experience’ needs to match the device for optimal results

• Rapid technology advances mean C.E. needs to be re-evaluated on an on-going basis


81%

0%

0%

1%

1%

4%

13%

0% 20% 40% 60% 80% 100%

Not willing to pay for service

> $15

$12-15

$9-11

$6-8

$3-5

$1-2

1 in 5 Users Willing to Pay for Today’s Mobile Banking

Revenue Potential Will Rise as Mobile Offerings and Customer Experience Improve


Monthly Fee for Mobile Banking Access

Michael J. McEvoy Managing Director

+1.617.243.9500

[email protected]

www.athpower.com

Generating Mobile Banking Revenue While Improving Customer Experience

Generating Mobile Banking Revenue While Improving Customer Experience

Economy & Finance

Transcript of Generating Mobile Banking Revenue While Improving Customer Experience